Colorado Employers Benefit From Suspended Credit Report Legislation

Robert Capwell

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HB1127 Suspended Indefinitely

HB1127 Suspended IndefinitelyState of Colorado House Committee has voted down legislation that would have prohibited employers from utilizing consumer credit information for any type of general employment purpose including hiring, promotion, reassignment or retention. As proposed, Colorado House Bill 1127 specified that employers could not use consumer credit reports unless:


  • The credit information was substantially "job-related," and the employee would have access to money, other assets, trade secrets or other confidential information; or

  • The position sought was any of the following:
    a)  Managerial position
    b)  Position in the Department of Law
    c)  Sworn Peace Officer or other law enforcement position; or
    d)  A position for which the consumer credit information is required to be 
        disclosed by law or to be obtained by the employer

The legislation would have been enforced by the Director of the Division of Labor at the State of Colorado Department of Labor and Employment, and any person injured by an employer's violation of the new provisions would have the right to file a civil action to obtain injunctive relief and/or damages. According to the State of Colorado Legislature website, the House Committee has suspended HB1127 "indefinitely" as of February 17, 2011.

Background Checks, Legislative Alerts, EEOC & FCRA

Robert Capwell

Posted By: Robert Capwell

EBI’s Chief Knowledge Officer, Mr. Robert E. Capwell, is considered one of the leading experts in the background screening industry with over 22 years of experience in the field. Mr. Capwell was a contributing author of the second edition of the ASIS Pre-employment Background Screening Guidelines and has written numerous articles and whitepapers for various publications including a periodic column on background screening for The Society for Human Resource Management (SHRM) Online. He has been quoted in The Wall Street Journal, Human Resource Executive Magazine, Entrepreneur Magazine, and several HR-related publications. Mr. Capwell speaks regularly to industry colleagues and HR Professionals both nationally and internationally.

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